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a company decides to ig ore a small error in its inventory balance.   this is an...

a company decides to ig ore a small error in its inventory balance.   this is an example of the application of the ________?

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Answer:- Ignoring a small error in Inventory balance is an example of application of Materiality Concept.

According to materiality concept all material items must be properly reported in financial statements. If the inclusion or exclusion of an item significantly impacts the decision of the users of financial statements,  it is considered to be material. Here, the decision of the company to ignore the small error in inventory valuation is an example of application of materiality concept as it will not affect  the view or opinion of a reasonable person.

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